Equity Incentive Plans (Notes)

12 Months Ended

Mar. 31, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity incentive plans

EQUITY INCENTIVE PLANS

Share-Based Compensation Expense

The following table presents the details of the Company's share-based compensation expense (amounts in thousands):

	Year Ended March 31,
	2012			2011			2010
Cost of sales	$	5,648	(1)	$	6,825	(1)	$	7,054	(1)
Research and development	14,719			12,874			12,194
Selling, general and administrative	17,922			17,113			17,530
Pre-tax effect of share-based compensation	38,289			36,812			36,778
Income tax benefit	4,889			4,493			4,563
Net income effect of share-based compensation	$	33,400		$	32,319		$	32,215

⁽¹⁾ During the year ended March 31, 2012, $6.8 million of share-based compensation expense was capitalized to inventory, and $5.6 million of previously capitalized share-based compensation expenses in inventory was sold.  During the year ended March 31, 2011, $7.1 million of share-based compensation expense was capitalized to inventory, and $6.8 million of previously capitalized share-based compensation expense in inventory was sold. During the year ended March 31, 2010, $7.0 million of share-based compensation expense was capitalized to inventory, and $7.1 million of previously capitalized share-based compensation expense in inventory was sold.

The amount of unearned share-based compensation currently estimated to be expensed in the remainder of fiscal 2013 through fiscal 2017 related to unvested share-based payment awards at March 31, 2012 is $69.6 million.  The weighted average period over which the unearned share-based compensation is expected to be recognized is approximately 2.02 years.

Combined Incentive Plan Information

RSU share activity under the 2004 Plan is set forth below:

	Number of Shares
Nonvested shares at March 31, 2009	3,601,772
Granted	1,846,241
Forfeited/expired	(120,198	)
Vested	(689,867	)
Nonvested shares at March 31, 2010	4,637,948
Granted	1,766,257
Forfeited/expired	(171,967	)
Vested	(990,932	)
Nonvested shares at March 31, 2011	5,241,306
Granted	1,627,191
Forfeited/expired	(184,926	)
Vested	(1,191,351	)
Nonvested shares at March 31, 2012	5,492,220

The total intrinsic value of RSUs which vested during the years ended March 31, 2012, 2011 and 2010 was $43.7 million, $32.6 million and $17.5 million, respectively.  The aggregate intrinsic value of RSUs outstanding at March 31, 2012 was $204.3 million, calculated based on the closing price of the Company's common stock of $37.20 per share on March 31, 2012.  At March 31, 2012, the weighted average remaining expense recognition period was 2.06 years.

The weighted average fair value per share of the RSUs awarded is calculated based on the fair market value of the Company's common stock on the respective grant dates discounted for the Company's expected dividend yield.  The weighted average fair value per share of RSUs awarded in the years ended March 31, 2012, 2011 and 2010 was $30.48, $26.05 and $20.75, respectively. 

Option activity under the Company's stock inventive plans in the three years ended March 31, 2012 is set forth below:

			Weighted
	Number of		Average Exercise
	Shares		Price per Share
Outstanding at March 31, 2009	10,081,533		$	24.20
Granted	12,000		27.03
Exercised	(1,492,866	)	22.03
Canceled	(140,888	)	27.79
Outstanding at March 31, 2010	8,459,779		24.52
Granted	—		—
Exercised	(2,885,365	)	23.09
Canceled	(77,490	)	29.39
Outstanding at March 31, 2011	5,496,924		25.21
Granted	—		—
Exercised	(2,129,260	)	25.53
Canceled	(6,667	)	25.05
Outstanding at March 31, 2012	3,360,997		$	25.00

The total intrinsic value of options exercised during the years ended March 31, 2012, 2011 and 2010 was $26.7 million, $29.8 million and $7.6 million, respectively.  This intrinsic value represents the difference between the fair market value of the Company's common stock on the date of exercise and the exercise price of each equity award.

The aggregate intrinsic value of options outstanding and options exercisable at March 31, 2012 was $41.0 million.  The aggregate intrinsic values were calculated based on the closing price of the Company's common stock of $37.20 per share on March 31, 2012.

As of March 31, 2012 and 2011, the number of option shares exercisable was 3,360,997 and 5,491,363, respectively, and the weighted average exercise price per share was $25.00 and $25.20, respectively.

There were no stock options granted in either of the years ended March 31, 2012 and 2011. The weighted average fair values per share of stock options granted in the year ended March 31, 2010 was $5.90.  The fair values per share of stock options granted in the year ended March 31, 2010 were estimated utilizing the following assumptions:

	Year Ended March 31,
	2010
Expected term (in years)	6.50
Volatility	36	%
Risk-free interest rate	2.57	%
Dividend yield	5.00	%